DoD Awards $21.9M Follow-On Contract for Raven Logistics Support to Aerovironment, Inc
Contract Overview
Contract Amount: $21,948,507 ($21.9M)
Contractor: Aerovironment, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-03-01
End Date: 2015-07-08
Contract Duration: 1,224 days
Daily Burn Rate: $17.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THIS IS A FOLLOW-ON CONTRACT FOR FY12 RAVEN CONTRACTOR LOGISTICS SUPPORT FOR THE ARMY, USMC AND ACCOUNTING FOR CONTRACT SERVICES. A PRICED RANGE OPTION FOR FIELD SERVICE REPRESENTATIVE SUPPORT (1 - 4) WAS INCORPORATED.
Place of Performance
Location: MONROVIA, LOS ANGELES County, CALIFORNIA, 91016, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $21.9 million to AEROVIRONMENT, INC. for work described as: THIS IS A FOLLOW-ON CONTRACT FOR FY12 RAVEN CONTRACTOR LOGISTICS SUPPORT FOR THE ARMY, USMC AND ACCOUNTING FOR CONTRACT SERVICES. A PRICED RANGE OPTION FOR FIELD SERVICE REPRESENTATIVE SUPPORT (1 - 4) WAS INCORPORATED. Key points: 1. Contract is a follow-on to FY12 Raven Contractor Logistics Support. 2. Includes a priced range option for Field Service Representative support. 3. Aerovironment, Inc. is the sole awardee. 4. The contract falls under Aircraft Manufacturing (NAICS 336411).
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award amount is $21.9 million, but the specific pricing for the option period is not detailed, making a direct value assessment difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this sole-source contract may result in taxpayers paying more than necessary for contractor logistics support.
Public Impact
Ensures continued operational readiness for Raven systems used by the Army and USMC. Supports critical logistics and field services for unmanned aerial systems. Potential for increased costs due to sole-source nature of the award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
- Follow-on nature may indicate a lack of market research for alternatives.
Positive Signals
- Provides essential support for critical military assets.
- Awardee has existing knowledge of the Raven system.
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, specifically supporting unmanned aerial systems. Spending benchmarks for similar logistics support contracts can vary widely based on system complexity and duration.
Small Business Impact
The awardee, Aerovironment, Inc., is not identified as a small business. There is no indication that small businesses were subcontracted for this award.
Oversight & Accountability
The contract's sole-source nature warrants close oversight to ensure fair pricing and prevent potential cost escalations. Robust performance monitoring is crucial given the CPFF contract type.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency on option pricing
- Potential for cost overruns
- No small business participation indicated
Tags
aircraft-manufacturing, department-of-defense, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.9 million to AEROVIRONMENT, INC.. THIS IS A FOLLOW-ON CONTRACT FOR FY12 RAVEN CONTRACTOR LOGISTICS SUPPORT FOR THE ARMY, USMC AND ACCOUNTING FOR CONTRACT SERVICES. A PRICED RANGE OPTION FOR FIELD SERVICE REPRESENTATIVE SUPPORT (1 - 4) WAS INCORPORATED.
Who is the contractor on this award?
The obligated recipient is AEROVIRONMENT, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $21.9 million.
What is the period of performance?
Start: 2012-03-01. End: 2015-07-08.
What is the justification for awarding this contract sole-source, and what steps were taken to ensure fair and reasonable pricing?
The provided data indicates the contract was 'NOT COMPETED'. A sole-source award typically requires a justification, such as the uniqueness of the service or the contractor's specialized knowledge. Without this justification, it's difficult to assess the necessity of bypassing competition and the measures taken to ensure fair pricing, which is a key concern for taxpayer value.
What are the specific risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this context?
The CPFF structure means the government pays the contractor's allowable costs plus a fixed fee. Risks include the contractor having less incentive to control costs, as the fee is fixed regardless of final cost. This can lead to cost overruns if the government's oversight is insufficient to manage the contractor's spending effectively.
How does the lack of competition impact the long-term effectiveness and cost of Raven system support?
A sole-source award limits market competition, potentially leading to higher prices and reduced innovation over time. Without competitive pressure, the contractor may have less incentive to improve efficiency or offer cost-saving solutions. This could negatively impact the long-term cost-effectiveness of maintaining and supporting the Raven system.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W58RGZ11R0240
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 181 W HUNTINGTON DR STE 202, MONROVIA, CA, 91016
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,948,507
Exercised Options: $21,948,507
Current Obligation: $21,948,507
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2012-03-01
Current End Date: 2015-07-08
Potential End Date: 2015-07-08 00:00:00
Last Modified: 2017-06-12
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